U.S. apparel companies and overseas suppliers remain deadlocked over who should absorb costs from Trump’s new tariffs, according to The Wall Street Journal. VF Corp., parent of North Face and Dickies, requested a 3.5% cost reduction from suppliers, warning them not to cut worker protections. Similar demands came from REI, Burton, and 5.11 Tactical, though suppliers argue that absorbing the costs would push their already-thin margins into the red. VF CFO Paul Vogel said the company plans to offset the 10% tariffs fully through cost-cutting, price increases, and shifting some sourcing. Most of VF’s U.S.-bound goods come from countries outside China, including Vietnam, Bangladesh, and Cambodia. Industry insiders warn that the prolonged dispute is stalling innovation and threatening long-term supply chain stability.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02U.S. apparel companies and overseas suppliers remain deadlocked over issue to observe costs
00:06for Trump's new tariffs, according to the Wall Street Journal. VF Corp, parent of North Face
00:10and Dickey's, requested a 3.5% cost reduction for suppliers, warning them not to cut worker
00:15protections. Similar demands came from REI, Burton, and 5.11 Tactical. Though suppliers
00:21argued that absorbing costs would push their already thin margins into the red, VF CFO Paul
00:25Bogle said the company plans to offset the 10% tariffs fully through cost-cutting, price
00:30increases, and shifting some sourcing. Most of VF's U.S.-bound goods come from countries
00:35outside China, including Vietnam, Bangladesh, and Cambodia. Industry insiders wanted the
00:40prolonged dispute is stalling innovation, threatening long-term supply chain stability.
00:44For all things money, visit Benzinga.com slash GSTV.